Physicians Medical Group moving staff to Scotts Valley

SCOTTS VALLEY >> Physicians Medical Group of Santa Cruz is the first large business to lease space in the Enterprise Technology Centre, the former Borland headquarters off Highway 17 that became available in November, and plans to relocate 60 employees comprising its administrative staff from Live Oak in July.

PMG, as it is known, is an independent practice association negotiating contracts with insurers for 300 doctors in private practice in Santa Cruz County, coordinating care and providing technology and administrative support.

Employees at PMG have been based for almost nine years at the Live Oak Business Park, which is being renovated to become headquarters for the Santa Cruz County Sheriff's Office.

"It has taken us a long time to find a place," said Marvin Labrie, PMG's chief executive officer, who got the first notice from the county in 2011. "The county is supposed to help us with the relocation expense."

PMG is leasing 14,000 square feet at 100 Enterprise Way, near Santa's Village Road, for five years with a couple of options to renew.

The asking rate posted in November was $2 per square foot, which included utilities, janitorial services and furnishings, and no extra charge for parking.

"Free parking is a big deal," Labrie said, noting that space in downtown Santa Cruz cost more because of the parking impact fee and buying parking permits for employees.

The medical group hosts morning and afternoon "working committee" meetings for physicians — some commuting from Watsonville, Salinas and Morgan Hill — who are unenthusiastic about spending another 10 to 30 minutes driving.

"I worry about added commute and stress," Labrie said. "If it doesn't work, we'll open a small office in Mid-County and use that for physician meetings."

Labrie, who lives in Manana Woods just outside the Scotts Valley city limit, said the new site offers some advantages.

Employees who have been in three suites will be united in one large suite, and a Club One fitness center is conveniently located within the office complex. Labrie is thinking of inviting food trucks to give staff lunch options.

"I'm looking forward to the tech center taking off again," he said. "It's kind of a ghost town now."